The Cellular Group

For industrial and commercial sectors, electricity supply is charged according to a rational cost household for large companies. Therefore, these do not receive government subsidies, while subsidies for small firms are relatively small. Moreover, agricultural and residential customers have traditionally received large subsidies because the electricity they consume is priced considerably low. The extensive subsidies have contributed to a rapid growth in demand. In 2000, half the rate residential covered only 43 of the costs, while the average rate for agricultural use covered 31 . The total subsidies represent 46 of the total sales of electricity. 16 In addition, grants were received, mainly energy residential class and upper middle-income as the amount of subsidy increases with consumption.
In 2002, a restructuring of the residential rates increase considerably the rates paid by consumers infra media, and especially large electricity. gas is supplied by that has been at the forefront of the energy supply market Currently, programs vary according to temperature billing, station or level of consumption. Despite this reform, the price / cost remained below 40 in 2002, even after 21 increase in the price following the reform. In addition, the percentage of subsidies to the non-poor remained high, around 64 . having moved to Energy Agricultural tariffs are also changed in 2003 when it established a fixed price per kWh. The new tariffs sought by charging higher prices in the use of excess energy.
Low rates, together with the inefficiencies of LFC absorb a large amount of tax revenue (2002: 1 gas of GDP, 54 of total revenues for electricity and 165 of the total investments in electricity).

AFP via Yahoo! News
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Bloomberg
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CNW Group via Yahoo! Finance
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ITNews
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